About this website

The website explains how distributable cash flow (DCF) is defined and why it is important to analyze it and derive a sustainable measure of DCF. Results reported by master limited partnerships (MLPs) are analyzed. comparisons of reported DCF to sustainable DCF are generated, and various coverage ratios and reports analyzing performance are generated. Simplified sources and uses of funds statements are presented to focus readers' attention on key cash flow items. The website also features general articles about MLPs and about other topics of interest to yield-focused investors.

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Disclaimer

The documents and opinions in this website are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the securities mentioned or to solicit transactions or clients. The information in this website is believed, but not guaranteed, to be accurate. All content on this website is presented as of the date published, is not updated and may be superseded by subsequent market events or for other reasons Under no circumstances should a person act upon the information contained within without first conducting his/her own independent research and consulting with his/her investment advisor and tax professional as to whether such action is suitable based on the investor’s investment objectives, personal and financial situation, and specific legal or tax situation.

Comparison of Selected Performance Metrics for Nine MLPs

Author: Ron Hiram

Published: August 6, 2016

Summary:

Nine MLPs are compared based on selected metrics including total returns, valuation multiples based on EBITDA and DCF, and leverage ratios; best and worst performers are highlighted. The MLP selection process is not formula driven; highest total return performers are not necessarily those providing the highest yields, […]

Have MLPs generated returns that justified the investment? A historical perspective

Author: Ron Hiram

Published: August 29, 2016

Summary:

A methodology for comparing total returns of the Alerian MLP Index and the S&P 500 is presented. Three distinct time periods are identified and compared: a very long period of AMZX over-performance, a short one of similar performance and, most recently, a fairly long period of underperformance. […]

Improvement in the U.S. Economy over the past 12 months

Author: Ron Hiram

Published: October 29, 2012

While there are wide-ranging and contradictory assessments as to the U.S. economy’s futureperformance and the adverse impact of the still unfolding Euro-zone crisis, the charts below graphically indicate improvement in some key parameters of the U.S. economy over the past 12 months. I use September 2011 as a […]

Correlation between Master Limited Partnership returns and oil prices-May 2012 could have been worse

Author: Ron Hiram

Published: June 25, 2012

In an article published January 19, 2012, I looked at the relationship between returns of master limited partnerships (“MLPs”)and oil prices and showed that while prior to 2008 the two were largely uncorrelated, reality has markedly changed over the last few years. Beginning around December 2008, the data […]

Increasing correlation between MLP returns and oil prices

By: Ron Hiram

Published: Jan 19, 2012

In this article I focus on the relationship between master limited partnership (MLP) returns and oil prices rather than on distributable cash flows of individual MLPs.

Important as it is, distributable cash flow is but one factor an MLP investor should consider. A serious analysis of the risks and […]